Zomato’s Situation Worsens, Competition Arisis To Sell Shares
Gurgaon, 6th May 2022: The Initial Public Offering (IPO) of online food delivery company Zomato was launched last year. Investors got huge profits from this IPO, but now the situation has become different. Now the stock of Zomato is at its lowest level. The situation is that the company has come down even below the issue price of its IPO.
On Friday, Zomato shares hit an all-time low of Rs 57.65 on the Bombay Stock Exchange (BSE) amid strong selling in the market. Currently, the stock is down as much as 66 percent from its all-time high. On November 16, 2021, the share price of Zomato touched an all-time high of Rs 169.10. Shares are down more than 57 percent on a year-on-year basis.
Zomato’s IPO had a banging entry in the stock market. On National Stock Exchange of India Ltd (NSE), the stock opened with a gain of Rs 116, or 52.63 percent, against the issue price of Rs 76. Zomato reported a net loss of Rs 63 crore for the quarter ended December 31, 2021.
Zomato reported a net loss of Rs 352.6 crore in the year-ago period and Rs 429 crore in the previous September quarter. Revenue from operations grew 82.47 per cent to Rs 1,112 crore as against Rs 609.4 crore in the same quarter a year ago.
Last month, the Competition Commission of India (CCI) ordered a probe into the operations and business model of food delivery companies, Swiggy and Zomato, related to alleged violations of Sections 3(1) and 3(4) of the Competition Act. After this the sell-off of Zomato’s stock increased.
